CORPORATE

ArcelorMittal Group bags Uttam Galva Steels through bankruptcy process

The ArcelorMittal Group on Friday added another steel company to its portfolio. The Mumbai bench of National Company Law Tribunal (NCLT) approved the resolution plan submitted by an Indian arm of the global steel company, ArcelorMittal, for debt-laden Uttam Galva Steels. 

Uttam Galva Steels was put under the Corporate Insolvency Resolution Process (CIRP) on an application made by State Bank of India (SBI) for not repaying its debts. 

Under the Insolvency and Bankruptcy Code (IBC), a resolution professional was appointed, and a committee of creditors (CoC) was created for undertaking the CIRP of Uttam Galva Steels. 

Later, the creditors’ committee, in complete majority, had voted in favour of the resolution plan submitted by ArcelorMittal. 

Then, the resolution professional filed an application for approval of the same before the bankruptcy court. 

The NCLT approved the resolution plan submitted by the ArcelorMittal group without any changes or amendments, and rejected all challenges. 

The decision paved the way for acquisition of Uttam Galva by ArcelorMittal. 

This is ArcelorMittal’s third purchase through the insolvency process in India after Essar Steel and Odisha Slurry Pipeline Infrastructure. 

ArcelorMittal and Nippon Steel plan to invest Rs 41,000 crore to boost crude steel output capacity by 6 million tonnes a year at its Hazira plant in Gujarat. 

The joint venture will build two blast furnaces, along with many other facilities, with plans to start operations by mid-2026. 

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